Mayor Zohran Mamdani is floating an extreme new proposal to change the state’s estate tax — a move that would hurt middle-class New Yorkers and their loved ones.

The socialist mayor wants to drastically slash the estate tax exemption threshold from the $7 million limit to just $750,000, a drop of more than 90%, according to a memo City Hall recently circulated to Albany lawmakers.

The “Tax Revenue Raising Proposals” document is a wish list containing dozens of different tax hikes that could be employed to bail the Big Apple out, according to Bloomberg.

New York City Mayor Zohran Mamdani speaks to city workers during a Ramadan iftar meal at the Museum of the City of New York on Thursday, March 12, 2026, in New York. AP

In addition to dropping the estate tax exemption — to what would be the lowest in the US — Mamdani is also pitching increasing the top rate to a whopping 50%, from the current 16%, in what he said would raise $4 billion combined, the outlet reported.

“This is a prime example of how the ‘tax the rich’ movement is actually all about taxing the middle class and those struggling to put food on their tables for their families,” Assemblyman Michael Tannousis (R-Staten Island) told The Post of the proposal.

“What can you buy in New York City for $750,000? Not much at all.”

City Council Member Phil Wong (D-Queens) said lowering the exemption threshold would “hit a lot closer to home than people realize.”

“With property values where they are today, families could be forced to sell the very homes they hoped to pass on to their children,” he said. “Government cannot keep piling on taxes that punish middle-class homeowners.”

Mamdani has been putting pressure on Hochul and the state Legislature to help cover what it says is a $5.4 billion budget deficit for the fiscal year that begins July 1.

Other “revenue raiser proposals” on the city’s memo included:

A property tax surcharge of 1% for homes valued at $5 million-plus, to raise $725 million.

A 1% tax on home sales over $1 million, to raise $161 million.

A “City Mansion Tax” and supplemental tax on residential properties valued at $5 million or more, to raise $321 million.

Adding a state-level surcharge on capital gains income over $500,000 per year, to raise $12 billion.

Lift the exemption of sales tax for sales of precious metal bullion and coins over $1,000, to raise roughly $600 million statewide and $300 million in the city.

The proposal was part of a presentation made to state lawmakers last week as they started to hash out New York’s budget with the governor’s office.

New York Governor Kathy Hochul speaks during a press conference at a bus depot in New York, New York, USA, 13 March 2026. SARAH YENESEL/EPA/Shutterstock

The memo has been widely circulated by city hall to lawmakers, including leadership, as well as the governor’s office over the last two weeks, sources said.

The document also listed Mamdani’s “priorities,” which he’s been vocal about, of hiking personal income taxes by 2% for New Yorkers making $1 million or more, which he estimated would raise some $3 billion.

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Other priorities on the memo included:

Hike the city corporate tax to 10.8% from 9% for financial sector firms, and from 8.85% to 10.62% for non-finance sectors, to raise an estimated $1.5 billion.

Increase the NYC Unincorporated Business Tax to 4.4%, from 4% for those with business income over $5 million, to raise around $250 million.

Mamdani has warned he’ll be “forced” to hike city property taxes by nearly 10% if Hochul and the Legislature don’t go along with his “tax the rich” plan, and also wants to pull from the Big Apple’s “Rainy Day Fund” to cover the deficit.

“Reducing the New York estate tax threshold by 90% to $750,000 while increasing the top tax from 16% to 50% will chase New Yorkers out of the state faster than bad schools and property tax increases,” said longtime Democratic operative Ken Frydman.

“This is not tax policy, this is a list of DSA dues,” quipped another Dem operative, who requested anonymity.

The document also listed Mamdani’s “priorities,” including hiking personal income taxes by 2% for New Yorkers making $1 million or more. NYC Mayor

The slate of proposals has leaked out since last week. The Post first reported some of the details of the memo. New York Focus later obtained more of the proposal and Bloomberg posted the full document on Friday.

One Democratic state lawmaker said the estate tax proposal was a non-starter, and would hurt homeowners in the outer boroughs.

“Having this tax threshold reduced to $750,000 is the opposite of the intention of ‘taxing the rich’. This is taxing middle and working class residents of the outer boroughs,” the lawmaker jeered.

The governor’s office declined to comment on the proposal.